Etsy (NASDAQ:ETSY) Shares Down 3.2% – Should You Sell?

Etsy, Inc. (NASDAQ:ETSY)’s stock price fell 3.2% on Tuesday . The company traded as low as $54.78 and last traded at $54.80. 323,045 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 2,378,700 shares. The stock had previously closed at $56.61.

Analyst Ratings Changes

Several research firms have issued reports on ETSY. Truist Financial dropped their price objective on Etsy from $76.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. Wells Fargo & Company cut their price target on shares of Etsy from $47.00 to $44.00 and set an “underweight” rating for the company in a report on Friday, November 1st. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Etsy from $48.00 to $50.00 and gave the company a “hold” rating in a research report on Friday, November 1st. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $50.00 price objective on shares of Etsy in a report on Monday, October 7th. Finally, Wedbush reduced their target price on Etsy from $65.00 to $58.00 and set a “neutral” rating on the stock in a report on Tuesday, October 22nd. Four analysts have rated the stock with a sell rating, thirteen have issued a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $63.17.

Etsy Stock Down 1.0 %

The firm has a market capitalization of $6.01 billion, a price-to-earnings ratio of 27.26, a price-to-earnings-growth ratio of 6.96 and a beta of 1.99. The company’s fifty day moving average is $54.75 and its two-hundred day moving average is $55.16.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings results on Wednesday, October 30th. The specialty retailer reported $0.45 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.09). Etsy had a net margin of 9.17% and a negative return on equity of 46.79%. The company had revenue of $662.40 million during the quarter, compared to analyst estimates of $652.47 million. During the same period last year, the company earned $0.64 EPS. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. On average, equities research analysts expect that Etsy, Inc. will post 2.25 EPS for the current year.

Etsy declared that its board has initiated a stock buyback program on Wednesday, October 30th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the specialty retailer to purchase up to 17.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Insider Activity

In related news, insider Nicholas Daniel sold 750 shares of the company’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $52.50, for a total value of $39,375.00. Following the completion of the sale, the insider now owns 24,371 shares in the company, valued at $1,279,477.50. This represents a 2.99 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ETSY. Blue Trust Inc. raised its position in shares of Etsy by 106.5% during the third quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock worth $26,000 after purchasing an additional 231 shares during the period. UMB Bank n.a. increased its stake in Etsy by 112.3% during the 3rd quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer’s stock worth $31,000 after purchasing an additional 292 shares in the last quarter. Capital Performance Advisors LLP acquired a new stake in Etsy during the 3rd quarter worth approximately $43,000. Versant Capital Management Inc lifted its stake in Etsy by 153.1% in the fourth quarter. Versant Capital Management Inc now owns 825 shares of the specialty retailer’s stock valued at $44,000 after buying an additional 499 shares in the last quarter. Finally, Prospera Private Wealth LLC acquired a new position in shares of Etsy in the third quarter valued at approximately $59,000. 99.53% of the stock is owned by institutional investors and hedge funds.

About Etsy

Etsy, Inc, together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items.